96.5 F
San Fernando
Thursday, Mar 28, 2024

Engineering A Turnaround

In the giant-versus-giant competition of the defense industry, IEE Inc. enjoys its status as a small niche supplier. To illustrate the strategy, Chief Executive Tom Whinfrey points to a contract won last year for work on the Air Force’s F-15E fighter. The Van Nuys company, which makes high-quality panel displays, landed the contract by beating Rockwell Collins Inc., the multinational avionics supplier based in Cedar Rapids, Iowa. “It’s unique that this little company in California can compete with the big boys,” Whinfrey said. Under the contract, IEE makes liquid-crystal monitors to replace aging and obsolete cathode ray tube technology in cockpit displays. In addition to the F-15 contract, another recent win for the company was from Northrop Grumman Corp. to provide control displays for roadside bomb-jamming equipment. Although IEE has a history stretching back decades, that’s no advantage in the fast-advancing technology industry. In fact, in the last few years the company has engineered a turnaround and now plans to accelerate growth by exporting. From a 60,000-square-foot facility on Kester Avenue, IEE makes panel displays not only for the military, but for industrial and retail clients, too. About half the company’s business is for defense customers with other uses making up the other half, including machine automation, price verifiers in grocery stores and ticket kiosks at train stations. “They are all over the world,” Whinfrey said. IEE marks 70 years in business this year and the anniversary comes at a time when the company has beefed up its strategy to sell internationally. The company was accepted in June into the California State Center for International Trade Development Initiative. One program of this initiative is the California State Trade and Export Promotion, or STEP, that helps businesses export their products and provides financial assistance for attending overseas trade missions and exhibitions, export training and developing international marketing materials. As an exporter of military equipment, IEE deals directly with the State Department to receive approval to sell to foreign customers. It also falls under the International Traffic in Arms Regulations program that controls the export and import of defense-related products and services. In June, IEE took part in the Eurosatory military trade show in Paris. Nancy King, a consultant with IEE, said attending the trade show allowed the company to make contacts with potential customers and sales representatives and to more effectively check out the competition. “The follow-up from that looks very promising,” King said. The STEP program is administered by the Small Business Administration and in California by GoBiz, the business and economic development agency in the governor’s office. More than 300 small businesses were assisted by the program last year. Diana Dominguez, special advisor on international trade at GoBiz, said that IEE was indicative of the type of company that signs up even though it had already been exporting its products. Participation in the program for an experienced exporter can bring new markets and strengthen relations with current trading partners, Dominguez said. “They are always learning and markets are changing,” she explained. “It allows them to refresh and find resources they did not know about before.” Turnaround lessons IEE was founded in 1946 in North Hollywood by the late Donald Gumpertz. Then known as Industrial Electronic Engineers Inc., the company manufactured automatic control systems for its first 10 years until creating a rear projection readout display that proved popular. After Gumpertz’s death, his three daughters took ownership of the company. Whinfrey said he could not disclose revenue. Whinfrey was hired five years ago as part of a management change and turnaround. Since taking the helm, he has consolidated operations from five buildings to two, laid off half of the 125 employees working at the time, revamped the product line and installed a new enterprise resource planning system – a business-management software that collects, stores and manages data. What Whinfrey learned from the turnaround was to be responsive to customer needs and make the products they were looking for. “It had gotten away from that,” he added. “It was mismanaged and needed to be right-sized for what it was doing.” Placing a higher emphasis on exporting was part of the turnaround as well. In decades past, a company could focus solely on the domestic market, but the reality of today is that you sell to customers around the globe, Whinfrey said. “That has made a big impact on the ability to grow a company,” he added. Through its history, growth at IEE has occurred because of innovation, quick turnaround on customer orders and keeping in-house all the steps in making the display panels, from placing components on printed circuit boards to testing. Whinfrey said he also credits the employees with the longevity the company has enjoyed. Some have made their careers at IEE, staying for 20 years or more. That helps in understanding the technology and the manufacturing processes, Whinfrey said. “We still build products that we designed 25 years ago,” he added. “They are still here building those same products.” This story has been modified to accurately reflect the correct title of Nancy King

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

Featured Articles

Related Articles